An interesting discussion of PayPal's emphasis on its non-GAAP numbers from the New York Times:
[PayPal] does not consider stock awards a cost when calculating its favored earnings measure. So when PayPal doles out more stock compensation than it has done historically, all else being equal, its chosen non-GAAP income growth looks better.
... under PayPal’s alternative accounting, its non-GAAP operating income was $659 million in the June quarter, an increase of almost 25 percent from 2016.
So what’s to account for the added $230 million in operating income under PayPal’s preferred calculation? Most of it — $192 million — was stock-based compensation PayPal dispensed to employees in the June quarter and added back to its results as calculated under GAAP.
Submitted August 06, 2017 at 05:13PM by goodDayM http://ift.tt/2fjqYE2
